Triad Guaranty (Nasdaq: TGIC), a private mortgage insurer, lost $198.8 million in the second quarter. TGIC has lost a total of $348.8 million in 2008.

This drastic lost is even more shocking when you compare it to the fact TGIC posted a gain of $12 Million just a year ago.

That’s the problem with mortgage insurance…once the threads start to unravel, it’s hard to stop.

Let’s not forget Fannie Mae and Freddie Mac are the same type of company as TGIC…a mortgage insurer.

TGIC - Triad Guaranty - Ceasing New Business

The company said it will cease taking in new business and simply service the existing policy holders and loss mitigation since writing new policies expose the company to more losses.

CEO William Ratliff said on The Business Journal,

“The size of our second quarter loss reflects the depth and breadth of the collapse of the housing and mortgage markets.”

TGIC will not be the only the mortgage insurer to take huge hits in the housing crisis…and we all have to wonder just how much hot water Hank Paulson and Congress put the tax payer in when they passed the GSE bail out bill last week.

My guess…$300 Billion…at least.

Of course, since the 600 page bill was not released in it’s entirety, and Congress is known for not reading the legislation it passes, we’ll never really know until it hits us in the back of head like a thief in the night some day in the future.

That’s why they were in such a hurry to get it past…

Good Luck!

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